External and Internal Factors on Management

Page 1 of 5

External and Internal Factors on Management

By | July 2010
Page 1 of 5
EXTERNAL AND INTERNAL FACTORS ON MANAGEMENT
Douglas Williams and Vicente Segura
MGT330
March 28, 2010
Rickie Baldwin

The four functions of management, planning, organizing, leading, and controlling, are affected by external and internal factors within any business. The Wal-Mart Corporation is not immune from these factors affecting management decisions. If Wal-Mart wants to be remain successful and competitive the following key factors must be constantly considered: globalization, technology, innovation, diversity, and ethics. A quick explanation of the four functions of management. Planning is strategic, tactical, or operational. Strategic planning provides the vision, direction, and goals for the organization. Tactical planning is a set of procedures for translating broad strategic goals and plans into specific goals and plans. Operational planning is the conversion of strategy into execution. Organizing is establishing the internal organizational structure of the business. Leading involves close day-to-day contact with people, helping to guide and inspire them toward achieving team and organizational goals. Controlling is a four-step process of establishing performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary. After analyzing the external environment and internal resources, strategic managers have the information they need to put together a plan for corporate, business, and functional goals for the organization. A comparison of strengths, weaknesses, opportunities, and threats normally is referred to as a SWOT analysis (Bateman-Snell, 2009). One corporation that continues to be successful even in today’s depressed economy is the Wal-Mart Corporation. Back to the key factors that Wal-Mart considers in its management decisions: globalization, technology, innovation, diversity, and ethics.

Globalization
In the globalization...